Rivian stock could crash another 45% from here: Barclays warns
Rivian Automotive Inc (NASDAQ: RIVN) is already down well over 20% year-to-date but a Barclays analyst warns it could continue to sink sharply over the next twelve months.
Rivian stock has downside to $9.0Copy link to section
Dan Levy downgraded the electric vehicles company this morning to “equal weight” and slashed his price to $9.0 which suggests an alarming 45% downside from here.
The analyst is super dovish on Rivian stock primarily because he expects the broader slowdown in the EV space to make it harder for the Nasdaq-listed firm to turn positive in terms of margins and cash flow.
$RIVN is scheduled to report its financial results for the fourth quarter on February 21st. Consensus is for it to lose $1.67 a share versus $1.73 per share a year ago.
Rivian deliveries were down 10% in Q4Copy link to section
A continued need for raising new capital particularly “in preparation for the high volume R2 in 2026” also factored into Dan Levy’s bearish call on Rivian stock today.
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Weaker demand is a threat to volume outlook and pricing – which suggests $RIVN will “miss its 2024 target of reaching gross margin profitability”, as per his research note to clients on Monday.
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In January, Rivian Automotive Inc said it delivered 13,972 vehicles in total in the fourth quarter – down some 10% sequentially but roughly in line with 14,000 deliveries that analysts had forecast.
Note that Barclays view is in contrast with our market analyst Crispus Nyaga who recently added the Irvine-headquartered firm to his list of top EV stocks to buy on the dip.
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